Executing a Sales Force Turnaround

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    Executing a Sales Force Turnaround - Presentation Transcript

    1. CASE STUDY PRESENTATION Paris, 8 october 2009 TURNING AROUND A WEAK PERFORMING A ct SALES TEAM ua lly av ai la bl e By Erik Van Rompay
    2. WHO AM I ? bl e I am an interim ila lly av a executive a tu Ac specialised in turning around high-tech companies http://vanrompay.online.fr
    3. I present today 2 CASES… “it is full part of my portfolio… but gives a restricted view of my “360 degrees” turnaround activity”
    4. CASE 1 : Retail company (entertainment products) SITUATION (view given by the board) - sales revenue dropping since 2 years - an old product line at the end of life - new product line is a disaster (nobody wants it) MY MISSION : restructure the activity so the company can sell their new product line Team = 9 sales people (+ 2 admin)
    5. STEP 1 : AUDIT AUDIT 1 : Market situation - Pricing of the product lines (old & new) - Comparison with the 2 main competitors - Result : pricing + positioning are weak but OK AUDIT 2 : Prospect Decision Criteria Answering the question : Why does someone want to buy with us ? Brand name Sales Written Oral skills and image relationship documents (& demo) 19% 28% 35% 18%
    6. STEP 1 : AUDIT RESULT : - Brand name : poor as the company was a newcommer (and did not deliver). - Brand image : poor (the sales reps didn’t even posses a presentation of the company) - Sales relationship : poor (no methodology) - Written documents : poor -> one A4 sheet with only text to present the new product line - Oral presentation : poor -> not prepared and not consistent - Team : 9 individual sales people so 9 different styles to sell the products
    7. AUDIT – case 1 AUDIT 3 : sales incentives There was no sales incentive to sell the new product line ! Even worse… the sales rep got 30% more revenue by selling the old products ! AUDIT 4 : product quality Poor delivery & badly packaged (not sexy enough) AUDIT 5 : Customer needs OK (the first 2 users loved the new product)
    8. ONCE YOU KNOW THE PROBLEM YOU HAVE THE SOLUTION
    9. THE ACTION PLAN STRUCTURING EDUCATE THE THE SALES SALES REPS TO CYCLE SELL THE NEW PRODUCT-LINE CREATING A CREATING OF VISUAL A STRONG IDENTITY SALES PITCH Full Sales Documents Package SOLVING OF CREATING A REPACKAGING THE MARKET THE PRODUCT INCENTIVES RECOGNITION ISSUE Newcommer = Higher Innovation DELAY AUDIT+IMPLEMENTATION : 3 MONTHS SALES ON SCOPE 3 MONTHS LATER
    10. Also.. the 9 individual sales people working independently… became a a united sales TEAM
    11. CASE 2 : Internet Startup SITUATION (view given by the board) - sales revenue dropping fast since 6 months - no software upgrade in the past 6 months (unable to deliver new releases/bug repairs) - “we” are too expensive so we don’t sell our products at the right price (so request to do heavy cost-cutting) - Market with strong competition MY MISSION : solve the problem 7 salespeople (+1 admin)
    12. STEP 1 : AUDIT AUDIT 1 : Market situation - Pricing of the product line - Comparison with the main competitors Result : pricing + positioning are at market average so OK (for the time being) AUDIT 2 : Prospect Decision Criteria Answering the question : Why does he want to buy with us ? Brand name Sales Written Oral skills and image relationship documents (& demo) 19% 28% 35% 18%
    13. AUDIT – case 2 RESULT : - Brand name : Strong (so OK) - Brand image : OK - Sales relationship : poor (no methodology) - Written documents : OK (just needed a slight tuning) - Oral presentation : OK Main problem identified: - no methodology to track prospects, neither to identify the leads to track in priority
    14. AUDIT – case 2 AUDIT 3 : sales incentives In line so OK AUDIT 4 : product quality - Poor delivery - Unstable product & unstable platform AUDIT 5 : Customer needs/requirements No time to execute - Several board members confirmed the product itself was perfect…
    15. ONCE YOU KNOW THE PROBLEM YOU HAVE THE SOLUTION
    16. THE ACTION PLAN…1 STRUCTURING LAUNCHING THE SALES EDUCATE THE OF A QUICK- CYCLE SALES REPS TO WIN to the IDENTIFY REAL market as a LEADS sign that the IMPLEMENT company was SALES CREATING OF again REPORTING A NEW SALES marketleader PITCH … SOLVING OF THE O COST N TECHNICAL CUTTING PROBLEMS DELAY AUDIT+IMPLEMENTATION : 2 MONTHS SALES DID INCREASE…. But not enough
    17. AUDIT 2 – Alignment As we did not execute AUDIT 5 : Customer needs/requirements We didn’t identify a major “sales” problem : - all our documents and salespitch were made for IT people (IT Directors, webmasters…) but it was mainly Marketing and/or Sales people that were deciding the purchase of our product. SOLUTION : reworking all documents AND all the sales pitches to have, depending on the client and the decission process, a different sales approach.
    18. RESULT – case 2 Sales up by 70% after 6 months The company catched up and sales numbers were again on scope as defined in the 3 years business plan. To be noted : this all requested intensive changes … and 5 of the 7 sales people left the company within the year. This did not disturb the sales numbers neither other activities in the company.
    19. THANK YOU FOR YOUR ATTENTION If you have any question… don’t hesitate to email me… @online.fr vanrompay
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